AECI's profit up despite South African headwinds

AECI Limited (JSE:AFE) reported mixed results for the five-month period ended 31 May 2025. While international operations in AECI Mining showed improved performance, South African-based operations faced headwinds from challenging operating conditions and supply issues. Revenue slightly decreased year-over-year, but EBITDA increased to ZAR1.248 billion, resulting in an improved EBITDA margin of 10%. Profit from operations rose by 17% to ZAR800 million. This was driven by improved margin performance in AECI Mining's Asia-Pacific region and effective cost management. The company successfully secured new mining contracts in the Democratic Republic of Congo, Australia, Ghana and Botswana. Net debt improved significantly to ZAR3.383 billion. AECI expects to report an overall improvement in results for the six months ending 30 June 2025, and will publish its interim results on or around 30 July 2025.